Can I Keep My Home With Chapter 7 Bankruptcy in NJ?

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Few things are more frightening than the prospect of losing your home. Unfortunately, it is very easy to fall behind on certain debts and find yourself in a position where you’re receiving foreclosure notices in the mail. Additionally, many people don’t understand that getting into debt doesn’t always mean a person is bad at managing their finances; often, something as simple as a car accident or a costly medical procedure is all it takes to set a person back significantly in terms of their finances. That said, no matter your situation, if you believe you are at risk of losing your home, you should understand that you have options. One of those options is, potentially, Chapter 7 bankruptcy.

Please continue reading and reach out to a Bergen County Chapter 7 bankruptcy lawyer from the Law Office of Boyd & Squitieri for more information. Here are some of the questions you may have:

Will Chapter 7 bankruptcy enable me to keep my home?

One of the most important benefits of filing for Chapter 7 bankruptcy is that it triggers what’s known as an automatic stay. Essentially, the automatic stay immediately stops creditors from all collection activities until the bankruptcy process is completed, meaning they can no longer take your home. Further, as long as you go through the bankruptcy process successfully, your home and your vehicle will be considered “exempt” assets, meaning creditors cannot take them away from you. For this reason, Chapter 7 bankruptcy is one of the very best ways to prevent foreclosure on your home.

How do I know if I qualify?

To qualify for Chapter 7 bankruptcy, you will first have to go through the bankruptcy means test. As long as you are eligible, your debts will be listed and schedules will be signed, and, from there, liens and debts will be filed with the bankruptcy court. This will initiate the bankruptcy process. You should note, however, that if you do not qualify for Chapter 7 bankruptcy, it does not necessarily mean that you are out of options. Depending on your individual circumstances, you may still qualify for Chapter 13 bankruptcy or even foreclosure mediation.

In any case, if you are facing financial hardship or the prospect of losing your home, you mustn’t make the mistake of proceeding without a competent attorney in your corner. Contact the Law Office of Boyd & Squitieri today to get the help you need.